Encompass Health (NYSE:EHC) Reaches New 12-Month High - Time to Buy?

Key Points

• Encompass Health shares reached a new 52-week high of $129.96, supported by a consensus “Buy” rating and an average analyst price target of $148.50.
• The company beat quarterly expectations with $1.55 in EPS versus $1.48 forecast and $1.60 billion in revenue, up 9.6% year over year. Management issued fiscal 2026 EPS guidance of $6.02–$6.25.
• Encompass Health raised its quarterly dividend to $0.21 per share, while insiders sold approximately $23.4 million worth of stock over the past 90 days.

Encompass Health Corporation (NYSE:EHC - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday. The stock traded as high as $129.96 and last traded at $128.92, with a volume of 30,873 shares. The stock had previously closed at $126.56.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on EHC. Truist Financial lifted their price objective on Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a report on Friday, August 7th. Weiss Ratings raised shares of Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. TD Cowen increased their target price on shares of Encompass Health from $125.00 to $140.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Barclays lifted their price target on shares of Encompass Health from $140.00 to $144.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Finally, Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, September 26th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $148.50.

Encompass Health Price Performance

The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a market capitalization of $12.65 billion, a P/E ratio of 20.90, a PEG ratio of 2.52 and a beta of 0.74. The company's 50 day moving average price is $122.40 and its 200 day moving average price is $111.24.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The firm had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.57 billion. During the same quarter in the previous year, the company posted $1.40 EPS. Encompass Health's revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, sell-side analysts anticipate that Encompass Health Corporation will post 6.08 EPS for the current fiscal year.

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be given a dividend of $0.21 per share. The ex-dividend date is Thursday, October 1st. This is an increase from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health's dividend payout ratio is presently 13.68%.

Insider Buying and Selling at Encompass Health

In other news, EVP John Darby sold 8,906 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the transaction, the executive vice president owned 75,041 shares of the company's stock, valued at $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Mark Tarr sold 173,148 shares of the firm's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the transaction, the chief executive officer owned 267,814 shares in the company, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 186,912 shares of company stock worth $23,434,845 in the last ninety days. 1.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Fort Washington Investment Advisors Inc. OH lifted its holdings in shares of Encompass Health by 19.8% in the third quarter. Fort Washington Investment Advisors Inc. OH now owns 281,075 shares of the company's stock valued at $34,148,000 after purchasing an additional 46,512 shares in the last quarter. ABLE Financial Group LLC grew its holdings in shares of Encompass Health by 1.9% during the third quarter. ABLE Financial Group LLC now owns 16,730 shares of the company's stock worth $2,033,000 after buying an additional 308 shares in the last quarter. Sivik Global Healthcare LLC grew its holdings in shares of Encompass Health by 166.7% during the third quarter. Sivik Global Healthcare LLC now owns 40,000 shares of the company's stock worth $4,860,000 after buying an additional 25,000 shares in the last quarter. Wedmont Private Capital acquired a new stake in Encompass Health in the 3rd quarter valued at approximately $205,000. Finally, Diversified Management Inc. acquired a new position in Encompass Health during the 3rd quarter worth approximately $230,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Encompass Health Company Profile

Encompass Health Corporation NYSE: EHC is a healthcare services company focused on inpatient rehabilitation. Through its network of rehabilitation hospitals, the company provides intensive medical and therapeutic care to patients recovering from conditions such as strokes, brain and spinal cord injuries, hip fractures, amputations, neurological disorders, and other disabling illnesses or injuries.

Its rehabilitation hospitals offer coordinated care from physicians, nurses, therapists, and other healthcare professionals.

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